Donald Trump to Scrap Student Loan Forgiveness Program
Donald Trump is reportedly planning to end the Student Loan Forgiveness Program.
According to The Washington Post, the budget documents prepared by the Trump administration reveal that funding for federal education initiatives may be cut for school-choice programs. About $400 million from the Student Loan Forgiveness Program will be used for charter schools and private schools instead. Described as "near final version," the documents are expected to be formally released next week as part of Trump's budget proposal.
Education Secretary Betsy DeVos gives her full support for the government's plan, which aims to divert the $400 million towards the development of private and religious schools, and the expansion of charter schools.
"It's time for us to break out of the confines of the federal government's arcane approach to education," DeVos said earlier this month. "Washington has been in the driver's seat for over 50 years with very little to show for its efforts."
The program, which is also called the Public Service Loan Forgiveness Program (PSLFP), aims to cancel any remaining student loan of individuals working for the government or nonprofit organizations who have been consecutively making payments for 10 years. A huge number of law enforcement officers, teachers, and public defenders are qualified for the program.
The PSLFP was signed into law by former President George W. Bush under the College Cost Reduction and Access Act of 2007 (CCRAA), and was later amended by former President Barack Obama.
A public version of the budget documents is expected to be accessible next week. It is worth noting that the Congress would have to approve the proposed changes before they take effect. Based on the documents, it is unclear whether the administration will propose to stop the program for future graduates or just cancel it for borrowers who have already fulfilled payments.
